Tesco misses the mark

Tesco is said to be dropping the carbon labelling that it displayed so prominently on many of its products. This was a groundbreaking scheme for a monster of the retail sector. Where did it all go wrong?

Marketing Week reports that Tesco’s move reflects “disappointment” that more supermarkets didn’t follow suit. But this isn’t a blame game of Tesco showing leadership and others failing to follow. Plenty of activity is going on to communicate product sustainability to consumers, whether it’s the mass of Fairtrade labels in Sainsbury’s and the Co-op, free-range-egg labelling on Hellman’s mayonnaise and McDonald’s paper bags, or the pictures of smiling, eco-friendly farmers on pots of Yeo Valley, on the meat in Waitrose and on the KitKat wrapper. Retailers and Brands are talking to consumers; they’re just talking in a different way to Tesco.

The fact of the matter is that many consumers don’t fully understand what a carbon footprint is, let alone feel informed to make a decision based on a “360g CO2” label on their orange juice. We need a clearer message about the products on Tesco’s shelves. That could mean more recognised labels such as Fairtrade, Red Tractor, Freedom Food or even the new WindMade sign. But even better would be embedding sustainability into the brand so that consumers trust that what they’re buying meets a certain standard. Hats off to M&S, there. Tesco was right to think that consumers want supermarkets to show leadership, but its attempt to engage them in that conversation missed the mark.

Wikipedia's protest

Wikipedia's protest last week was interesting. Taking down the whole of the English section of their encyclopaedia to raise awareness is a pretty bold step and so there's obviously a lot that can be said about it.

It appeared at first a great example of a company using its brand power to champion a social campaign. It worked well through making its point evident of its action - imagining a world without free information.

It was done in order to argue that American legislation to police the internet should not be passed. However whilst it seemed great at using its product to prove its point, I was disappointed by its use of power instead of its use of its expertise.

I, like others that visited the site, followed the link to learn more and yet it left me even more confused. I still did not understand exactly what the legislation was about and how it would affect companies like Wikipedia. Whilst it was good to have precise action points, what could have made its campaign even better is if it had simply laid out a very clear page explaining the proposed legislation with the pros and the cons - thus educating people to decide for themselves instead of biasing their views by providing too little information.

Wikipedia's position has always been strong for providing clear, unbiased and organised information which makes it easier for readers to gather knowledge. Yet with the protest last week, with some irony, its greatest strength became its greatest weakness as it did little to prevent its view from seeming biased. As a company that even refuses to display adverts for fear of biasing its content it seems a shame that it took this route to explain its views.

New Year, New Capitalism

When the Prime Minister keeps his speech so hidden that even Robert Peston can’t get a sneaky peek, you know he’s got something important to say.

And when the leader of the opposition is making a speech on the same subject on the same day, you know they’re talking about a hot topic.

Today, David Cameron and Ed Miliband will be talking very loudly about responsible business. They’ve seen the opinion polls, and they know that the public is ready and waiting to see political and corporate leadership in building sustainability into our economy, post-financial crisis.

‘But what will the government actually do?’, we all say. Rumour has it that Cameron plans to announce new policy to make it easier to set up co-operatives. With their typical partnership model of democratic management and shared profits between members, co-operatives find it easy to create shared value. So much so that the UN has declared 2012 to be International Year of Co-operatives, hoping to “raise public awareness of the invaluable contributions of cooperative enterprises to poverty reduction, employment generation and social integration”.

Co-operatives are certainly gaining a lot of attention – but it’s not just because they’re ‘nice’. It’s because they’re successful.

In the UK, John Lewis has announced bumper profits for the Christmas period, while The Co-operative has grown to such strength that in December it was announced as the preferred bidder to take over the 632 branches that Lloyds is being forced to sell. Overseas, in the economic powerhouses of Brazil, Russia, India and China, there are now four times as many co-operative members as direct shareholders. Globally, the top 300 co-operative businesses turnover $1.1 trillion a year – that’s equivalent to a top 10 economy of the world.

The growth and successes of co-operatives are, of course, influenced by a myriad of factors from sound financial management to marketing, from the appeal of the products to the appeal of the brand.

But what’s interesting (and what the PM and the UN seem attracted by) is that successful cooperatives embed responsible activities throughout the business, building trust in the brand.

I know that the mango I bought from the Co-op has been traded fairly, that it was grown in an environmentally sound way, and that the staff in the store will be helpful and positive. I know, because I trust them. I know, even if I didn’t read The Co-op’s new ‘radical’ ethical operating plan.

The fact that co-operatives are increasingly successful poses an interesting challenge – or rather an opportunity – for other business. It suggests that taking into account the values and the best interests of all those touched by the business is more than fluffy niceties. It’s something that consumers choose, something that builds value for those with a stake in the company, something that the government supports, something that employees value; it’s something that can drive success. And if the growing strength, credibility and popularity of co-operatives is anything to judge by, a more positive business approach might well prove itself to be a key ingredient for the winners of 2012.